Frequently Asked Questions
Common questions about working with MangoBooks, tax due dates and choosing a business structure.
Working With MangoBooks
What does MangoBooks do?
MangoBooks is a Los Angeles CPA firm that provides individual and business tax preparation, tax planning, monthly and catch-up bookkeeping, payroll, business formation and financial statements. For business owners, we prepare the company's return and the owner's personal return together. See Services.
Does MangoBooks work with clients outside the city of Los Angeles?
Yes. MangoBooks is based in Los Angeles and works with clients remotely elsewhere in Southern California. Meetings are held by phone or video, and documents are exchanged electronically. See Service Area.
What documents are needed for the first meeting?
Last year's federal and California returns and, for a business, its most recent business return and current financial reports. The new client checklist lists the documents for individuals, businesses, rental properties and stock compensation.
Can a client switch CPAs partway through the year?
Yes. We start from the last two or three years of returns, the current year's books and payroll reports, and a record of estimated payments already made, and continue the work from there.
How are fees set?
Fees depend on the scope of work and are set out in a written engagement letter before work begins. Typical ranges are listed in our Fee Guide.
Deadlines and Payments
When are tax returns due?
For calendar-year filers, federal and California individual returns are due April 15. S corporation and partnership returns are due March 15, and C corporation returns are due April 15. When a due date falls on a Saturday, Sunday or legal holiday, it moves to the next business day. Current dates are listed on our Resources page.
How do tax extensions work?
Individuals can extend the federal deadline to October 15 with Form 4868, and California extends the deadline to October 15 automatically. Businesses extend federal returns with Form 7004, generally for six months, and California extends business returns automatically. An extension covers filing only; tax owed is still due by the original due date.
Who needs to make estimated tax payments?
Individuals, including sole proprietors, partners and S corporation shareholders, generally make federal estimated payments if they expect to owe $1,000 or more when the return is filed. California payments are generally required when the expected balance is at least $500, or $250 if married filing separately. Federal payments are due April 15, June 15, September 15 and January 15. California asks for 30 percent in April, 40 percent in June, nothing in September and 30 percent in January.
How is a move into or out of California taxed?
A part-year resident files Form 540NR and is taxed on all income received while a California resident and on California-source income while a nonresident. We prepare individual returns that involve more than one state.
Business Owners
Should a business be an LLC or an S corporation?
An LLC is a business structure allowed by state law, and S corporation status is a federal tax election that a corporation or an LLC can make. In California, an LLC pays an $800 annual tax, plus an LLC fee once its total California income reaches $250,000. An S corporation pays 1.5 percent of its California net income, with an $800 minimum. An S corporation must pay an owner who works in the business reasonable compensation as wages before making other distributions to that owner. We work through the numbers with the owner during a consultation. See Business Formation.
When does an S corporation election have to be filed?
Form 2553 must be filed no more than 2 months and 15 days after the beginning of the tax year the election is to take effect, or at any time during the tax year before it. Relief for late elections may be available in some cases.
Can MangoBooks help when the books are behind?
Yes. Catch-up bookkeeping brings the books up to date for the months or years that were missed, and monthly bookkeeping keeps them current after that. Business returns and tax planning are then based on complete books. See Bookkeeping.
Schedule a Consultation
Call (213) 255-4665 or send us a short message about your situation.
Please do not include Social Security numbers, bank account numbers or tax documents in the form.